Mebane council sets date for budget hearing

MEBANE — Members of the Mebane City Council got an introduction Monday to the municipality’s proposed budget.

The budget for the upcoming fiscal year was presented by City Manager David Cheek during the council’s monthly meeting. It totals $20.8 million — almost identical to the current budget — and holds the tax rate at 47 cents per $100 valuation.

“I wish this budget was put together as fast as I just went over it,” Cheek said, chuckling at the conclusion of the presentation that took about 15 minutes.

“I feel those were the high points.”

Council members seemed generally positive about the budget and set the public hearing for it at 6 p.m. on June 3 — the date of their next monthly meeting. The council will likely vote on the budget at that same meeting.

Cheek described the budget as “essentially the same” as the current budget, though he acknowledged there were “lots of moving parts in there.”

The general fund grows by 13.9 percent in the proposed budget, Cheek noted — from $13.3 million to $15.1 million. He said of the $1.8 million general fund increase, $1.4 million is loan proceeds from a planned financing to purchase two fire engines, a street sweeper and a garbage truck.

The $1.4 million will be repaid over 10 years. Cheek said initially, the city planned to purchase only one fire engine this year. But he said problems have developed with a second truck, so it was decided to replace two.

Cheek said there are several changes in the budget involving fee schedules. Building permit and inspection fee changes will increase slightly. Cheek gave an example of how such fees would affect someone building a 2,200-square-foot, $133,000 house.

Under the present budget, fees would total $3,260. Under the proposed budget, the figure rises to $3,442 — an increase of 6 percent.

Cheek recommends a 3 percent cost-of-living raise for city employees, with performance pay available based on annual reviews. Dental insurance rates are increasing by 18 percent, along with a 6 percent hike in medical insurance.

Cheek said the cost to employees for insurance will not be increased.

Other budgeted items include a Bike & Pedestrian Plan, a Recreation Master Plan and a K-9 program for the police department.

“While not significant cost items, they do show the city’s increasing attention to growth and an eye on the future quality community life,” Cheek wrote in a budget overview presented council members.